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Qantas sees 13% profit dip as international competition bites

Qantas Airways Ltd, Australia's No 1 airline, said it expected underlying first-half net profit to fall up to 13 per cent as it slashes costs to cope with declines in international airfares.

PHOTO: REUTERS

[SYDNEY] Qantas Airways Ltd, Australia's No 1 airline, said it expected underlying first-half net profit to fall up to 13 per cent as it slashes costs to cope with declines in international airfares.

In its first-quarter earnings report, Qantas said it expected underlying profit before tax of between A$800 million (S$845 million) and A$850 million for the six months to Dec 31, 2016, compared with A$921 million for the same period a year earlier.

"Like most carriers globally, we are seeing international airfares below where they were 12 months ago," Qantas Chief Executive Officer Alan Joyce said in a statement.

"The impact of that is tempered by the competitive advantages we've been working hard to fortify, including our strong domestic position and diversified loyalty business."